Answer:
Legal
Explanation:
Legal risk is basically a type of risk where the source or consequence is legal in nature. It is basically a risk that has a legal issue as its source and a legal issue is a set of facts that are assessed under a set of legal norms.
Hence, Diabetic Daily Inc., based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan company, due to inadequate protection of intellectual property rights. Diabetic Daily Inc. is trying to avoid legal type of risk.
